Question 1

The escrow agent is always selected by the real estate broker.

Accepted Answer

A) True 
 B)False

Question 2

Choose the one most appropriate answer for each.
-an escrow for the purpose of financing a property not in connection with a sale

Accepted Answer

A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through 
A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through

Question 3

Choose the one most appropriate answer for each.
-deposit of documents and funds with a neutral third party plus instructions as to how to conduct the closing

Accepted Answer

A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through 
A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through

Question 4

The proration of prepaid condominium association dues will result in a

Accepted Answer

A)  charge to the seller and credit to the buyer. 
B)  charge to the buyer and credit to the seller. 
C)  charge to the seller and credit to the association. 
D)  charge to the association and credit to the buyer. 
A)  charge to the seller and credit to the buyer. 
B)  charge to the buyer and credit to the seller. 
C)  charge to the seller and credit to the association. 
D)  charge to the association and credit to the buyer.

Question 5

In an escrow closing, the escrow agent serves as agent for the buyer.

Accepted Answer

A) True 
 B)False

Question 6

The seller has just sold her home and received a closing statement and the balance due to her. Presuming no agreement to the contrary, which of the following should have been charged to the buyer?

Accepted Answer

A)  Proration of taxes with a debit to the seller for the tax year up to closing 
B)  Recording fee for the deed prepared by the sellers' attorney 
C)  Sales commission 
D)  Amount required to pay off the seller's loan 
A)  Proration of taxes with a debit to the seller for the tax year up to closing 
B)  Recording fee for the deed prepared by the sellers' attorney 
C)  Sales commission 
D)  Amount required to pay off the seller's loan

Question 7

A seller has agreed to pay 80% of the title insurance company's fee on a sale. The company charges $550 for the title policy, plus $95.50 for the title search and $50 for processing the papers. What is the difference between what the seller has to pay and what the buyer has to pay?

Accepted Answer

A)  20% 
B)  $139.10 
C)  $417.30 
D)  $556.40 
A)  20% 
B)  $139.10 
C)  $417.30 
D)  $556.40

Question 8

Choose the one most appropriate answer for each.
-an accounting of funds to the buyer and seller at the completion of a real estate transaction

Accepted Answer

A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through 
A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through

Question 9

Choose the one most appropriate answer for each.
-refers to closing costs paid by the buyer or seller that did not go through the closing agent

Accepted Answer

A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through 
A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through

Question 10

If an existing escrow is to be canceled, it must be done

Accepted Answer

A)  only by the buyer. 
B)  by mutual rescission. 
C)  by either party. 
D)  only by the seller. 
A)  only by the buyer. 
B)  by mutual rescission. 
C)  by either party. 
D)  only by the seller.

Question 11

The final inspection of the property just prior to the settlement date is called a _________________________.

Accepted Answer

The answer of The final inspection of the property just...

Question 12

Choose the one most appropriate answer for each.
-a method to avoid rescheduling a closing meeting when a document, known to be on its way, has not yet arrived

Accepted Answer

A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through 
A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through

Question 13

In some states, the use of a ____________________ month may be used instead of the actual days of the month.

Accepted Answer

The answer of In some states, the use of a...

Question 14

Choose the one most appropriate answer for each.
-the moment at which title passes from the seller to the buyer

Accepted Answer

A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through 
A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through

Question 15

A settlement statement, also called a ____________________ statement, is given to the buyer and seller to summarize the financial aspects of their transaction.

Accepted Answer

The answer of A settlement statement, also called a ____________________...

Question 16

An accounting of funds to the buyer and the seller at the completion of a real estate transaction is called a settlement statement.

Accepted Answer

A) True 
 B)False

Question 17

The purpose of a settlement statement is to provide an accounting of all funds involved in a transaction.

Accepted Answer

A) True 
 B)False

Question 18

Choose the one most appropriate answer for each.
-a final inspection of the property just prior to the settlement date

Accepted Answer

A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through 
A) 30-day month 
B) beneficiary statement 
C) CC&Rs 
D) closing date 
E) closing meeting
F)deed delivery
G)dry closing
H)escrow agent
I)escrow closing
J)good faith estimate
K)HUD settlement statement (HUD-1)
L)loan escrow
M)offset statement
N)outside of the closing
O)prorate
P)RESPA
Q)settlement meeting
R)settlement statement
S)title closing
T)walk-through

Question 19

Which of the following may serve as an escrow agent?

Accepted Answer

A)  A bank 
B)  An independent escrow company 
C)  A lender 
D)  Any of the above 
A)  A bank 
B)  An independent escrow company 
C)  A lender 
D)  Any of the above

Question 20

All of the following items are usually paid by the seller at the close of a residential sale escrow EXCEPT

Accepted Answer

A)  title search. 
B)  appraisal fee. 
C)  commission. 
D)  title insurance. 
A)  title search. 
B)  appraisal fee. 
C)  commission. 
D)  title insurance.

Exam 15: Title Closing and Escrow

The escrow agent is always selected by the real estate broker.

Choose the one most appropriate answer for each. -an escrow for the purpose of financing a property not in connection with a sale

Choose the one most appropriate answer for each. -deposit of documents and funds with a neutral third party plus instructions as to how to conduct the closing

The proration of prepaid condominium association dues will result in a

In an escrow closing, the escrow agent serves as agent for the buyer.

The seller has just sold her home and received a closing statement and the balance due to her. Presuming no agreement to the contrary, which of the following should have been charged to the buyer?

A seller has agreed to pay 80% of the title insurance company's fee on a sale. The company charges $550 for the title policy, plus $95.50 for the title search and $50 for processing the papers. What is the difference between what the seller has to pay and what the buyer has to pay?

Choose the one most appropriate answer for each. -an accounting of funds to the buyer and seller at the completion of a real estate transaction

Choose the one most appropriate answer for each. -refers to closing costs paid by the buyer or seller that did not go through the closing agent

If an existing escrow is to be canceled, it must be done

The final inspection of the property just prior to the settlement date is called a _________________________.

Choose the one most appropriate answer for each. -a method to avoid rescheduling a closing meeting when a document, known to be on its way, has not yet arrived

In some states, the use of a ____________________ month may be used instead of the actual days of the month.

Choose the one most appropriate answer for each. -the moment at which title passes from the seller to the buyer

A settlement statement, also called a ____________________ statement, is given to the buyer and seller to summarize the financial aspects of their transaction.

An accounting of funds to the buyer and the seller at the completion of a real estate transaction is called a settlement statement.

The purpose of a settlement statement is to provide an accounting of all funds involved in a transaction.

Choose the one most appropriate answer for each. -a final inspection of the property just prior to the settlement date

Which of the following may serve as an escrow agent?

All of the following items are usually paid by the seller at the close of a residential sale escrow EXCEPT

Nature and Description of Real Estate

Rights and Interests in Land

Forms of Ownership

Transferring Title

Recordation Abstracts and Title Insurance

Contract Law

Real Estate Sales Contracts

Mortgage and Note

Deed of Trust

Lending Practices

The Loan and the Consumer

Sources of Financing

Types of Financing

Taxes and Assessments

Real Estate Leases

Real Estate Appraisal

Licensing Laws and Professional Affiliation

The Principal-Broker Relationship: Employment

The Principal-Broker Relationship: Agency

Fair Housing, Ada, Equal Credit, and Community Reinvestment

Condominiums, Cooperatives, Puds, and Timeshares

Property Insurance

Land-Use Control

Real Estate and the Economy

Investing in Real Estate

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